Why Ideology Matters

Murray Sabrin

If you think the 2008 presidential campaign is an unending political marathon, get ready for the 2009 New Jersey gubernatorial campaign. It has arrived. Last week, Governor Corzine sent an email to his supporters reiterating many of the points he made in last month’s budget address.

I didn't run for office to be a number cruncher, or to play Scrooge - and the past year has been a difficult one of tough choices and bitter medicine. But our discipline and hard work are beginning to pay off. Certainly not enough to take a victory lap, yet. But we've had some important wins in our effort to put spending controls in place - and put New Jersey on an entirely new course of investment, growth and prosperity.

Corzine is positioning himself--again--as the no nonsense, compassionate Wall Street CEO who is taking on the Trenton political establishment in order to “invest” wisely on behalf of the people of New Jersey. The governor asserts he will also root out waste, fraud and corruption that are hampering the state’s economy from reaching its full potential, and hamstringing state government from using taxpayers’ money efficiently for worthwhile social purposes.

In addition, the governor wants to expand the Earned Income Tax Credit, which is essentially a tax refund for low income workers and a welfare payment disguised as a “hand up” to the working poor. In keeping with his ideological perspective, Corzine calls the EITC “a progressive tax cut for nearly 300,000 low and middle income working families.” In Corzine’s worldview, any government program or expenditure for poor, low-income, and middle income families or senior citizens is “progressive.” In other word, the means—redistribution of income by the state-- is noble and virtuous, because people have needs that the state is obligated to address.

Corzine obviously has a soft spot in his heart for families that are in the lower income brackets. The solution to poverty is relatively simple. Couples should not have children if they do not have the means to provide for them, and having children out-of wedlock is one of the most irresponsible acts anyone can commit. But taxpayers are supposed to be nonjudgmental and uncomplaining, and just pay their taxes so people can continue to engage in irresponsible behavior that has enormous negative social consequences.

Deferring child rearing and being an educated is the best anti-poverty program there is. That formula has been known for decades. But in our collectivist ideological world, it’s all about state control, state power, and state benefits. Individualism, family and community have been replaced with statism. Fortunately, the transformation to a total statist America is far from complete. However, the collectivist ideological triumphs have been stunning.

Two of the most important sectors of the economy are dominated by all levels of government: education and health care. That’s why Corzine, Hillary and other collectivists—both Democrats and Republicans--want more government involvement in these key areas. If universal health care comes to America—and it is coming faster than most people think—then the statists in both parties will have their greatest victory, the ability to determine who lives and dies in America. All in the name of security.

Because the welfare state is running out of money in New Jersey, Governor Corzine wrote to his supporters the following:
On the heels of our recent progress, I will continue to work to permanently restructure the state's finances. No idea advanced in good faith is off the table. And, yes, that means we ought to look carefully at something called asset monetization, which is a fancy bankers' term for leveraging state assets through leases or sales, assets such as the turnpike, the lottery, naming rights, and what have you. This approach has enormous potential to greatly reduce our crushing debt burden and free up billions of dollars that we are now paying to service that debt, our "charge card" payments. As long as we can ensure that public safety and the public interest are protected, we ought to move forward.

The governor admits that the state is broke, because his predecessors’ profligate spending. Nevertheless, Corzine will not be deterred from throwing a “Hail Mary” pass to refinance the welfare state in the Garden State. Both the short and long term solutions to New Jersey’s fiscal woes are a restructuring of state government. The key components are:
1) Reducing the state workforce by at least 10% immediately.
2) Eliminating state funding of local schools. Education should be paid for by the users, not taxpayers in general.
3) Instituting a plan for the financial independence of Rutgers, the state colleges and community colleges.
4) Phasing out social welfare spending over the next five years.

The above broad outline is consistent with the state constitution. As Article I, Paragraph I states:
All persons are by nature free and independent, and have certain natural and unalienable rights, among which are those of enjoying and defending life and liberty, of acquiring, possessing, and protecting property, and of pursuing and obtaining safety and happiness.

Although he took his oath of office more than a year ago to defend the state constitution, Jon Corzine’s mantra is: “From each according to his ability, to each according to his needs.” That’s the message Governor Corzine will be heralding over the next 30 months as his reelection campaign gears up.

Murray Sabrin, Ph.D., is professor of finance in the Anisfield School of Business, Ramapo College of New Jersey, where he is director of the Center for Business and Public Policy